VanEck has launched its tokenized Treasury fund, VBILL, on the Euler lending platform, marking a significant step in the integration of decentralized finance (DeFi) with institutional finance. This move allows investors to use tokenized U.S. Treasuries as collateral for borrowing and liquidity deployment onchain, while adhering to compliance requirements. The launch underscores the growing trend of DeFi protocols adapting to accommodate regulated financial products as institutional interest in tokenized finance increases. Tokenized U.S. Treasuries have rapidly expanded, reaching over $15 billion in assets, a 150% increase in a year, according to RWA.xyz. Major asset managers like BlackRock and Franklin Templeton have also introduced blockchain-based Treasury products. Euler, which has pivoted towards institutional use, integrated Securitize’s DS Protocol to facilitate the interaction of tokenized securities with lending markets, maintaining compliance with traditional finance standards. This development highlights the evolving landscape of DeFi as it aligns with institutional needs.